Tom is allowed to work 5 hours a day at his main job at a factory To earn extra income, he takes a second job at a fast food restaurant Even though is second job offers a lower wage, he can work as many hours as he would like If there is an increase in the wage rate for his factory job, Tom will reduce the number of hours he works at the fast food place, assuming leisure is a normal good True False If the real interest rate is 0,then you are able tosacrifice less than 1 unit of current consumption for 1 unit of future consumption True False You receive $20every year for forever, starting right now at current period The interest rate is and forever will be 10 The present value of this income stream is $200 True False

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Question: Tom is allowed to work 5 hours a day at his main job at a factory. To earn extra income, he takes a second job

Tom is allowed to work 5 hours a day at his main job at a factory. To earn extra income, he takes a second job at a fast food restaurant. Even though is second job offers a lower wage, he can work as many hours as he would like. If there is an increase in the wage rate for his factory job, Tom will reduce the number of hours he works at the fast food place, assuming leisure is a normal good.

True
False

If the real interest rate is > 0,then you are able tosacrificelessthan 1 unit of current consumption for 1 unit of future consumption

True
False

You receive $20every year for forever, startingright nowat current period.The interest rate is and forever will be 10%.The present value of this income stream is $200

True
False

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